32850 US-43 STE B, THOMASVILLE, AL 36784 844-229-8936 GOLDENTAXRELIEF.COM A $1.5 Million Lesson I CAN’ T ALWAYS BE THE HERO G o l d e n G a z e t t e APR 2018
It’s that time of year again: the month of the taxman. To all of our readers who have already filed, great job! For the rest, well, you’re getting down to the wire. I wish you the best of luck regardless of your filing status, but if you have any troubles down the road, you know who to call. Since switching from tax advising to tax relief, April has become a bit surreal for me. I still brace myself for a busy month, but it never gets as crazy as when I was doing compliance for clients. In the old days, my office used to work upward of 80–100 hours each week. I always made sure to give folks Sundays off, no matter how intense the workload was. Some values are just nonnegotiable. I don’t miss those long, stressful shifts leading up to Tax Day. If you think filing your own taxes is hard, imagine crunching the numbers for dozens of businesses and private persons. One thing’s for certain: You witness the good, the bad, and the ugly in folks when you try to help them bring their taxes into compliance. area, grossing over $28 million a year. Despite this, the man owed over $1.5 million to the IRS. From the beginning, I knew there was a larger issue than just tax problems going on here, but I never back down from a challenge. I jumped into the paperwork, determined to deliver a win for my client. I’ve seen it all. Once, I took on a client who owned five businesses in the Atlanta
It was high-pressure work. When someone owes over $1 million to the IRS, there’s a special unit, the Large Division of ACS, that gets assigned to the case. Essentially, this meant that two or three agents were combing through every single document I submitted. Despite this added scrutiny, I was able to secure an extremely favorable Partial Payment Installment Agreement, or PPIA, between my client and the IRS. We’ll delve more deeply into the specifics of PPIA in this newsletter, but essentially, I cut my client’s debt by 80 percent. Under this agreement, I arranged for the client to pay the IRS $5,000 a month until the remaining five-year statute of limitations (of the original 10-year statute) expired on the debt. This may sound like a lot, because it is. But look at the big picture: The client only had to pay $300,000 instead of $1,500,000. That kind of deal doesn’t just come along every day. I also totally revamped their businesses to run lean, securing the lowest tax rates possible. My hope was to save the client money and prevent tax problems in the future. But you know what they say about leading horses to water. You can’t make them drink. As is the case with so many instances of tax debt, the best payment plan in the world won’t make a lick of difference without the right attitude. Folks have
to want to fix the problem and put in the work. This client just wanted me to wave a magic wand and make the whole problem go away. Despite making over $10,000 a week, this client was finding new and creative ways to live beyond his means. He didn’t own anything. His cars, his house, his boats — they were all on expensive leases. Rather than change his lifestyle and get out of debt, he chose to maintain the facade of wealth, spending money like water. He didn’t keep up with his payments, and he even went to a tax lawyer behind my back, thinking some legal finagling could make all his worries go away. That’s when I washed my hands of him. They backed away from the PPIA agreement, and that $1.5 million debt, with its mountain of interest, came due. This was a hard lesson for me, but one I’m glad I learned. You can pull out all the stops for someone, using every tool and bit of knowledge you have to help them. But if they aren’t serious about helping themselves, there’s not a single thing on this good earth you can do for them.
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